Tommy Broughan (Dublin North East, Labour)
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Question 466: To ask the Minister for the Environment, Heritage and Local Government the action he has taken to ensure the implementation of the new article 7 of the European Regional Development Fund as part of EU structural funds, which allows an allocation of up to 4% of total ERDF funds to be allocated on energy efficiency improvement and on the use of renewable energy in existing housing in favour of low income households such as social housing; his plans to ensure that some voluntary housing stock particularly very old housing stock will be prioritised; and if he will make a statement on the matter. [27402/09]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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Ireland is in receipt of European Regional Development Fund (ERDF) and European Social Fund (ESF) support for the period 2007-2013 under the Regional Competitiveness and Employment Objective. There are three Operational Programmes agreed between Ireland and the European Commission for Ireland's allocation of Structural Funds. Two Operational Programmes are co-funded by the ERDF, namely the Border, Midlands and Western Operational Programme (BMW OP) and the Southern and Eastern Operational Programme (S&E OP), whereas the Human Capital Investment Operational Programme (HCI OP) is co-financed by the European Social Fund.

EU Structural Funds are governed by a series of European Regulations which are agreed among the European Institutions. Following recent consultation between the Institutions, Regulation (EC) no 397/2009, relating to the eligibility of energy efficiency and renewable energy investments in housing, was adopted on 6 May 2009. This Regulation broadens the scope of eligibility of ERDF expenditure to allow Member States incur expenditure on energy efficiency improvements and on the use of renewable energy in existing housing, up to an amount of 4% of the total ERDF allocation.

The Managing Authorities of the two ERDF Operational Programmes (BMW OP & S&E OP) have considered the new Regulation but do not propose to change the existing OP priorities as these will fully absorb the level of ERDF funding (€375 million) which has been allocated to Ireland for the period 2007-2013.

However, it should be noted that I have assigned considerable priority to the improvement of the energy performance of the social housing stock and my Department has developed a comprehensive national programme for the "greening" of the social housing stock. This programme includes a range of energy efficiency initiatives for which some €50 million has been set aside in 2009.

The range of energy efficiency improvement initiatives includes a programme of Towards Carbon Neutral demonstration projects, focussed on the construction of dwellings to a minimum Building Energy Rating (BER) standard of A2, as well as a number of demonstration projects for the retrofitting of insulation and other energy efficiency measures in the existing stock of local authority housing to achieve minimum B2 standards. The experience gained from these projects will inform my Department's approach to both new construction and remedial works schemes, to ensure a viable and energy efficient stock of local authority housing into the future.

Also, I recently announced close to €20m in allocations to local authorities for the retrofitting of insulation and other energy efficiency improvements in local authority housing prior to re-letting, and in apartment complexes. Local authorities have been preparing energy efficiency plans for their areas to manage the delivery of these improvements which will see the majority of dwellings achieve a minimum BER of C1.

Finally, local authorities may use their internal capital receipts, subject to approval by my Department of an annual improvement works programme, for measures including the installation of insulation, the replacement of windows and doors, and other initiatives to improve energy efficiency in their housing stock.